Wellcare Group - Comparative Multiple Analysis

Wellcare Group (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Wellcare Group

WikiWealth compares Wellcare Group's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Wellcare Group's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Wellcare Group.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Wellcare Group's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Wellcare Group's Analysis


How does this work? The Comparative Investment Analysis determines the value of Wellcare Group by comparing Wellcare Group financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Wellcare Group.

See the Wellcare Group cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Wellcare Group.

Also, see the Wellcare Group's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Wellcare Group's valuation conclusion for a quick summary.